BALA CYNWYD, Pa., July 12, 2002 (PRIMEZONE) -- A shareholder sued Triton Network Systems, Inc. (OTCBB:TNSIE) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Middle District of Florida, Tampa Division and seeks damages for violations of federal securities laws on behalf of all investors who bought Triton Network Systems, Inc. securities between July 13, 2000 and August 14, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Triton Network Systems, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that Triton Network Systems, Inc. issued a series of materially false and misleading statements to the market between July 13, 2000 and August 14, 2001. According to the Complaint, Triton's July 13, 2000 Prospectus contained false and misleading statements regarding its sales and revenue. The Prospectus also touted a three year supply agreement with a customer called Advanced Radio Telecom ("ART") representing that this agreement would account for a significant amount of revenue. However, defendants revealed on November 14, 2000, that "a key customer" that had previously been represented in the offering as having a issued "firm purchase orders," had requested that the Company "postpone delivery" of the orders until after it (ART) obtains additional financing." ART filed for bankruptcy on March 30, 2001.
Additionally, the complaint alleges that defendants disseminated materially false financial statements for each of Triton's interim quarters during the class period and for the year ended December 31, 2000, which materially overstated the Company's revenues and its net income. Defendants also made a series of other materially false and misleading statements about Triton and its financial condition and performance. The complaint further alleges that during the Class Period, defendants: (a) failed to include in its financial statements, all adjustments, necessary for a "fair presentation" of the financial results in violation of GAAP; (b) applied a non-GAAP accounting method which resulted in a material $2.7 million under-provision for bad debts; (c) failed to write off worthless intangible assets; and (d) failed to recognize a provision for loss and inventory purchase commitments. During the class period Triton's stock experienced a free fall -- plummeting from a high of over $40 per share in July of 2000 to less than $0.60 per share on August 14, 2001. On August 21, 2001, it was reported that Triton decided to close the company and sell its assets, pending shareholder approval.
If you purchased Triton Network Systems, Inc. securities between July 13, 2000 and August 14, 2001, you may be a member of the class and have until August 12, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.